Upbound Group, Inc. (NASDAQ:UPBD) Q3 2024 Results Conference Call October 31, 2024 1:00 PM ET Company Participants Jeff Chesnut - Head of Investor Relations Mitch Fadel - Chief Executive Officer Fahmi Karam - Executive Vice President an Conference Call Participants Vincent Caintic - BTIG Bobby Griffin - Raymond James Hoang Nguyen - TD Cowen Brad Thomas - KeyBanc Capital Markets John Hecht - Jefferies John Rowan - Janney Montgomery Scott Anthony Chukumba - Loop Capital Markets Operator Good day. Thank you fo ...

Revenue Growth - Consolidated revenues increased by approximately $267.0 million for the nine months ended September 30, 2024, compared to the same period in 2023[69]. - Total revenue increased by $267.0 million, or 9.0%, to $3,241.3 million for the nine months ended September 30, 2024, compared to $2,974.3 million for the same period in 2023[75]. - Total revenues increased by $89.8 million, or 9.2%, to $1,068.9 million for the three months ended September 30, 2024, compared to $979.1 million for the same period in 2023[73]. - Revenues for the three months ended September 30, 2024, increased by $5.1 million (1.1%) to $458.7 million compared to the same period in 2023, driven by higher rentals and fees revenues of $67.3 million[80]. Segment Performance - Acima segment revenues increased by approximately $256.9 million, attributed to higher rentals and fees revenues of $193.9 million and merchandise sales of $62.6 million[69]. - Revenues in the Rent-A-Center segment increased approximately $14.6 million for the nine months ended September 30, 2024, driven by a 1.9% increase in same store sales[70]. - The Mexico segment revenues increased by 8.9% for the nine months ended September 30, 2024, contributing to a gross profit increase of 10.2%, or $4.0 million[70]. - Acima segment revenues increased by $90.967 million, or 19.1%, to $566.183 million for the three months ended September 30, 2024, compared to $475.216 million for the same period in 2023[77]. - Revenues in the Mexico segment decreased by $612,000 (-3.1%) to $19.0 million for the three months ended September 30, 2024, while revenues for the nine months increased by $4.9 million (8.9%) to $60.5 million[81]. - Revenues in the Franchising segment decreased by $5.7 million (-18.6%) to $24.9 million for the three months ended September 30, 2024, primarily due to decreases in merchandise purchases by franchisees[83]. Profitability - Gross profit rose by approximately $62.5 million during the same period, primarily driven by the Acima segment's performance[69]. - Operating profit increased by approximately $105.5 million, mainly due to a decrease in other gains and charges of $104.5 million[69]. - Operating profit for the three months ended September 30, 2024, was $70.1 million, an increase of 20.7% compared to $58.1 million for the same period in 2023[72]. - Net earnings for the three months ended September 30, 2024, were $30.9 million, a significant increase of 607.3% compared to $4.4 million for the same period in 2023[72]. - Gross profit increased by $62.5 million, or 4.1%, to $1,572.1 million for the nine months ended September 30, 2024, with gross profit as a percentage of total revenue decreasing to 48.5% from 50.8%[76]. - Operating profit increased by $105.5 million to $212.5 million for the nine months ended September 30, 2024, with operating profit as a percentage of total revenue rising to 6.6% from 3.6%[76]. Expenses and Costs - Cost of rentals and fees increased by $45.6 million, or 15.4%, to $342.4 million for the three months ended September 30, 2024[73]. - Cost of merchandise sold increased by $36.0 million, or 23.0%, to $191.9 million for the three months ended September 30, 2024[73]. - Cost of rentals and fees increased by $122.4 million, or 13.8%, to $1,008.1 million for the nine months ended September 30, 2024, with the cost expressed as a percentage of rentals and fees revenue increasing to 38.2%[76]. - Non-labor operating expenses increased by $44.5 million, or 7.8%, to $613.8 million for the nine months ended September 30, 2024, with expenses as a percentage of total revenue decreasing to 19.4% from 19.7%[76]. - General and administrative expenses increased by $9.8 million, or 6.5%, to $160.2 million for the nine months ended September 30, 2024, with expenses as a percentage of total revenue at 4.9%[76]. - Lease charge-offs increased to $78.966 million for the three months ended September 30, 2024, compared to $68.925 million for the same period in 2023, representing a 15.4% increase[85]. - Total merchandise losses rose to $86.373 million for the three months ended September 30, 2024, compared to $75.278 million for the same period in 2023, marking a 14.6% increase[85]. Cash Flow and Financial Position - Cash flow from operations was $166.7 million for the nine months ended September 30, 2024[70]. - The company held $85.1 million of cash and cash equivalents and had outstanding indebtedness of $1.3 billion as of September 30, 2024[70]. - The company generated $166.7 million in operating cash flow for the nine months ended September 30, 2024, while using $291.6 million for debt repayments[84]. - The company ended the third quarter of 2024 with $85.1 million in cash and cash equivalents and outstanding indebtedness of $1.3 billion[84]. - Cash provided by operating activities decreased by $53.2 million to $166.7 million for the nine months ended September 30, 2024, from $219.9 million for the same period in 2023, primarily due to increased inventory purchases[86]. - Capital expenditures increased to $44.2 million for the nine months ended September 30, 2024, compared to $36.2 million for the same period in 2023, reflecting an increase of $8.0 million[86]. - The company had approximately $53.1 million in cash on hand and $474.4 million available under the ABL Credit Facility as of October 24, 2024[86]. - Outstanding borrowings under the Term Loan Facility amounted to $804.5 million as of October 24, 2024, with an interest rate indexed to the Term SOFR rate[88]. - A hypothetical 1.0% increase in market interest rates would result in an additional $8.0 million annualized pre-tax charge to the company's financial statements[91]. - The company recorded $0.5 million in uncertain tax positions as of September 30, 2024, indicating potential future cash liabilities[88]. - The company anticipates that cash flow generated from operations and availability under the ABL Credit Facility will be sufficient to fund operations during the next twelve months[86]. Strategic Initiatives - The company aims to enhance its competitive position by leveraging data analytics to attract new customers and mitigate risks across business segments[62]. - The company plans to accelerate the shift to e-commerce and improve the omni-channel customer experience at Rent-A-Center[62]. - The company is focused on expanding its direct-to-consumer channels and building partnerships with new national and regional third-party retailers[62]. - The company opened 3 new locations during the nine-month period ended September 30, 2024, bringing total locations to 2,320[87].

Upbound Group (UPBD) reported $1.07 billion in revenue for the quarter ended September 2024, representing a year-over-year increase of 9.2%. EPS of $0.95 for the same period compares to $0.79 a year ago.The reported revenue represents a surprise of +2.10% over the Zacks Consensus Estimate of $1.05 billion. With the consensus EPS estimate being $0.89, the EPS surprise was +6.74%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determ ...

Upbound Group (UPBD) came out with quarterly earnings of $0.95 per share, beating the Zacks Consensus Estimate of $0.89 per share. This compares to earnings of $0.79 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 6.74%. A quarter ago, it was expected that this company that leases furniture and appliances with an option to buy would post earnings of $1.02 per share when it actually produced earnings of $1.04, delivering a surp ...

| --- | --- | |-------|-------------------------------------| | | | | | Get It Now! home choice Franchising | Disclosures Forward-Looking Statements This communication contains forward-looking statements within the meaning of the U.S. Private Securities Liligation Reform Act of 1995, including, anong others, statements projections with respect to our operations, financial position and business strategy. Such forward-looking statements generally can be identified by the use of forward-look l"axped," "intend, ...

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After a rocky start to the month that led to a global market rout, two major inflation data seemed to have steadied the ship as the broader equity markets inched closer to all-time highs reached in mid-July. While the producer price index (a measure of wholesale prices) was up 0.1% last month, the consumer price index (a broad-based measure of prices for goods and services) increased 0.2%. This put the 12-month inflation rate at 2.9% — the lowest since March 2021. While the data gave an uncertain market som ...

Upbound Group (UPBD) closed the last trading session at $31.75, gaining 6.9% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $40.43 indicates a 27.3% upside potential. The average comprises seven short-term price targets ranging from a low of $31 to a high of $45, with a standard deviation of $5.09. While the lowest estimate indicates a decline of 2.4% from the current price level, ...

Upbound Group (UPBD) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change. The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system. The power o ...